Report to Mayor and City Council
Tuesday, April 02, 2019
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 1 TO THE AGREEMENT WITH MDG ASSOCIATES, INC. TO PROVIDE CDBG GRANT-FUNDED PROGRAM ADMINISTRATION SERVICES (CITY COUNCIL)
Body
I. SUMMARY
On July 1, 2018, the City entered into a five-year agreement with MDG Associates, Inc. (MDG) to provide Community Development Block Grant (CDBG) grant-funded program services (Exhibit No. 1), primarily related to the Neighborhood Pride Program (NPP) and the Commercial Fa?ade Program (CFP). This contract essentially dedicates a full time staff member to administer the work write-up, contractor selection and construction inspection portion of the NPP. Furthermore, a part-time (as needed) staffer provided the same services for the CFP.
In September 2018, the City staff member who provided administrative functions for the CDBG program retired and the position is not planned to be refilled. The functions of this position were very technical in nature and included monitoring expenditures, program changes, updates in state and federal (HUD) reporting websites, and fiscal monitoring. Upon retirement of the City staff member, the Community Development Director requested MDG to provide a part-time MDG staff to fill the gap in service so that there was no lapse in reporting that could put continuation of the grant funding at risk. As an offset for the additional work, the Director reduced the hours of the full time MDG staff by 25 percent. The proposed contract amendment adds a total of $154,200 to the contract over 5 years. However, not refilling the retired CDBG staff (savings of $129,043 per year) and a 25% reduction in the hours of another MDG staff (savings of $47,500 per year) would actually save the City $491,105 over the life of this 5-year contract including $131,825 in savings to CDBG and $359,190 in savings to the General Fund.
Staff is requesting that Council approve Amendment No. 1 to the agreement w...
Click here for full text